Avondale Private Lending

About Avondale Private Lending

Avondale Private Lending is a Dallas, TX based hard money lender who offers funding throughout Dallas and Fort Worth. They provide long term rental property loans and fix and flip hard money loans. Their lending parameters are versatile, including terms up to 6 months, rates starting at 12%, and loan amounts ranging from $100,000 to $500,000 with a maximum LTV of 75%. The focus of their lending is for single family residences.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans

Property Types Covered: Single Family

Areas Served: Dallas, Fort Worth

Lending Guidelines for Avondale Private Lending

Below are the general loan guidelines published on the Avondale Private Lending website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Avondale Private Lending.

Loan Example 1

Shauna takes a hard money loan from Avondale Private Lending in order to renovate a house to flip in Dallas, TX. The list price of the house is $240,000. The lender agrees to issue a loan with a 75% loan-to-value (LTV) so they are willing to extend $180,000 on the project. The interest rate on the note is 11% for a length of 12 months and the lender requires a five point origination fee at the closing. The interest payments are to be paid on a monthly basis and the principle amount will be paid back after the sale of the property.

In addition to paying the $9,000 origination fee, Shauna will also have to fund $60,000 of the purchase with her own money, or 25% of the sales price. The monthly interest only payments will then total $1,650 to Avondale Private Lending. At the expiration of the loan, she sells the rehabed house for $288,000. After deducting the $19,800 in interest expenses ($1,650 multiplied times 12 months), the $9,000 origination fee, the $180,000 principle amount on the loan, and the $60,000 she brought to the closing, she will earn a total profit of $19,200 ($288,000 price minus $268,800 in costs). This amount would then be reduced by any building costs paid by Shauna.

Loan Example 2

Tiffany locates a house in Dallas, TX to renovate and sell. Because she does not have enough cash to buy the property outright, she takes a fix and flip loan from Avondale Private Lending with the following parameters:

$360,000 purchase price
75% loan-to-value (LTV)
12 month term
9% rate of interest
2% origination fee

If Tiffany succeeds in her goal of a $486,000 sales price, the final numbers of the project would be as follows:

$486,000 sales price
- $270,000 principle (75% LTV)
- $90,000 down payment (25% on 75% LTV)
- $5,400 origination fee (2% of the $270,000 principle)
- $24,300 total interest paid (12 months x 9% interest)
-----------------------
= $96,300 total profit (doesn't include taxes or rehab costs)

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